Brisbane's men-only Tattersall's Club will now allow women full membership after a ballot on Wednesday night.
The vote was narrow with 1,368 men voting to keep women out and 1,405 voting to let them in. There were 242 informal votes.
Founded in 1865, the club describes itself as one of Australia's "most prestigious private membership clubs". Women were previously only allowed in as guests of members, if they held a "partner card" or if they were attending a function.
Tattersall's Club president Stuart Fraser told the ABC the motion received the highest level of participation of any motion in the club's history.
"We welcome the women in our families, the women in our lives, and the women in our communities," Fraser said.
Queensland premier Annastacia Palaszczuk last month said her ministers would boycott the 153-year-old club, which she said was "out of step" with the community.
The club had maintained a century-old tradition of offering honorary memberships to state government ministers, until she was elected as premier in 2015. Palaszczuk, her female deputy Jackie Trad and the other female ministers who make up half of the cabinet were never offered the memberships.